M5/H1 - M&W Formation Strategy

Learn how to leverage H1 Trend Block and M5 Retracement Patterns for High-Probability Entries

forex strategy, trend strategy, scalping entries

The M & W formation strategy is great if you like to enter on the M5 timeframe.  Start by analyzing the H1 timeframe Trend Block, make sure the block happened within the last 3 days. Use the IFX Trend Dashboard to give you all the data you need to trade this strategy.

Steps to trade the M5/H1 Strategy

1. Set up the dashboard to only show the M5 Blocks and Re-test & H1 Trend block with the B-Zone.

 

2. On the settings, select the H1 Block to show for the last 3 days old ONLY.

 

3.  Option 1 entry: Wait for the B-Zone to be highlighted and then analyze the chart for the relevant currency pairs. Once the M5 block alert emerges  in the same direction of the H1 Block and B-Zone, consider a possible entry using either the REV or Trend Block or Re-test entries.

 

5. Option 2 entry: Wait for price to reach Yesterday's High/Low. When the M5 Block alert appears in the direction of the H1 Trend Block, then analyze the chart as this could be a potential trade opportunity.

 

6. Important to know: The M5 block could happen inside or outside of the B-Zone or Yesterday's high/low. What is important is that price has reached those levels. 

 Key Benefits Of Trading The M5/H1 Strategy

Effective Risk Management

 

By waiting for the B-Zone or Yesterday's High/Low levels, traders can better manage their risk by entering trades near significant support and resistance levels, which can serve as high probable entries.

Increase Time Efficiency

 

The M5/H1 strategy allows traders to focus on specific market conditions and timeframes, saving time and effort compared to constantly monitoring multiple timeframes or strategies.

Improve Trading Discipline

 

By following a structured approach with clearly defined entry criteria, traders can develop better trading discipline and reduce the emotional aspects of trading, leading to better results.

Here is an example of a W formation entry using the H1 trend block. Price tested the H1 Trend Block by then given an entry on M5 timeframe forming a W.

Here is an example of an M formation entry using the H1 trend block. Price tested the H1 Trend Block by then given an entry on M5 timeframe forming an M.

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